Govt's cash position stressed in Q1

Cash position of the Centre was somewhat stressed in the first quarter of 2017-18 even as liquidity in the economy remained in surplus after demonetisation.

The cash position was stressed due to mismatch in receipt and payment, generally seen during the first half of the financial year, according to a report on public debt issued by the finance ministry. 

To tide over this mismatch in cash flows, cash management bills (CMBs) of varying durations amounting to Rs 1,30,000 crore were issued during the quarter. 
 

CMBs of Rs 40,000 crore were redeemed during the first quarter itself, added the report.